3/26/2008
ROL Manufacturing Files for Creditor Protection
ROL
Manufacturing has recently filed for creditor protection in Canada under the
“Companies' Creditors Arrangement Act.” The filing is also recognized
by the U.S. Courts.
Commenting on the announcement, Julian Haller, president and CEO,
said, “Certain factors related to economic pressure have driven us to
this decision. Our objective is to re-organize, emerge and strengthen
our company.
“A major contributor is that most of our manufacturing of gaskets,
rubber components and exhaust parts is in Canada. The continued
strength of the Canadian dollar, coupled with the fact that the
majority of our Canadian made parts are exported to the U.S. and sold
in U.S. dollars, has had a significant negative impact on our
financials.”
Haller added that an important part of the company’s
re-organization plan is to move more of its high-labor content,
commodity manufacturing to its Mexico facility. Canada will remain
ROL’s hub for engineering, R&D and high-tech manufacturing.
“This will help reduce our costs and get our company back to the financial strength we are accustomed to,” Haller said.
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